7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL

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7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
7

                                                          Daniel Fairclough, Head of Global IR
Global Resources Conference 2019, London                     Hetal Patel, General Manager IR
March 6th, 2019
                                      Highly Restricted                                          0
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Disclaimer
Forward-Looking Statements
This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries.
These statements include financial projections and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future operations, products and services, and
statements regarding future performance. Forward-looking statements may be identified by the words “believe”,
“expect”, “anticipate”, “target” or similar expressions. Although ArcelorMittal’s management believes that the
expectations reflected in such forward-looking statements are reasonable, investors and holders of
ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous
risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal,
that could cause actual results and developments to differ materially and adversely from those expressed in, or
implied or projected by, the forward-looking information and statements. These risks and uncertainties include
those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets
(Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission
(the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on
file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements,
whether as a result of new information, future events, or otherwise.

                                                                                                                     1
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Structural transformation
Improved business and improved industry means ArcelorMittal well positioned for success

     Global Steel Industry              ArcelorMittal Balance sheet              ArcelorMittal Portfolio

    ▪ Trade responses to                   ▪ Net debt reduced                        ▪ Action2020
       unfair competition                                                       ▪ Votorantim acquired
                                          ▪ IG rating recovered
     ▪ Capacity reduced                                                             ▪ ILVA acquired
                                            ▪ Deleveraging to
 ▪ Consolidation occurring                       continue                         ▪ Essar in process

        Strengthened                           Strengthened                          Strengthened

                                                                                                           2
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Safety is our priority
LTIF* rate in 2018 was the lowest since the ArcelorMittal merger

  3.1

                   2.5

                                   1.9
                                                   1.8

                                                                   1.4

                                                                                    1.0
                                                                                                   0.85            0.85            0.81             0.82            0.78
                                                                                                                                                                                    0.69

 2007            2008            2009            2010             2011            2012            2013             2014            2015            2016            2017           2018**
  * LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors; A Lost Time Injury (LTI) is an incident that causes an
 injury that prevents the person from returning to his next scheduled shift or work period. Lost Time Injury Frequency Rate (LTIFR) is the number of Lost Time Injuries per million man-hours.
 ** Data does not include the LTIFR for Ilva, which came into the scope as from November 1, 2018. Ilva LTIFR for the final two months of 2018 was 8.2, and the total LTIFR for the group inclusive
 of this was 0.73x for the FY 2018
                                                                                                                                                                                                     3
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Sustainable Development – key to our resilience
Driven by our vision to make steel the material of choice for the low carbon and circular economy

                         • Product innovation including S-in-motion® solutions for automotive
    R&D Driven
    Innovation           • Steligence®, a radical new concept for the use of steel in construction  awarded Steelie
                           award for ‘Excellence in Life Cycle Assessment’
                         • To low carbon and circular economy through Carbon Smart technology like the LanzaTech
                           project on Carbon Capture and utilisation at Gent, Belgium
    Contribution
                         • Design of our new headquarters in Luxembourg showcasing that steel components in are
                           re-usable

                         • Drive the development of environmental and social certificate schemes for steel and
    Development            mining production
                         • Providing customers new levels of complete mine-to-metal reassurance

                                                                                                                       4
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
2018: strategic progress and improved financials
Improved operating conditions more than offset operational disruptions

           Financial Highlights
                                         IG rating
                                         Recovered investment
• 20.3% increase in operating income
                                         grade credit rating with
• 22.1% improvement in EBITDA            all 3 agencies
• Steel shipment volumes declined
  1.6% (-3.0% adjusted for scope)        0.69x LTIF rate
• Net income of $5.1bn, representing a   Best safety performance since
  12% ROE                                ArcelorMittal’s merger

• Shareholders’ equity increased to
  $44.1bn                                $4.4bn                 $0.6bn
                                         Investment in          Net Pension and
• Net debt/ LTM EBITDA now 1.0x
                                         working capital        OPEB liability
• Recommended increase in base                                  reduced
  dividend to $0.20/sh                                          significantly

                                                                                  5
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
2018 financial results reflect better markets
Steel divisions benefitted from improved steel spreads partially offset by lower volumes

       •   2017 to 2018 EBITDA by segment ($bn)

                             0.5                          NAFTA:                          Europe:
                                                   10.3
                                                          EBITDA +45.1% to $2.5bn         EBITDA +7.0% to $3.8bn
                                    -0.1                  Shipments +1.0% to 22Mt         Shipments +0.2% to 41Mt

                      0.3                                 EBITDA/t +43.7% to $112/t       EBITDA/t +6.8% to $93/t

               0.4                                        BRAZIL:                         ACIS:
                                                          EBITDA +55.4% to $1.5bn         EBITDA +36.9% to $1.4bn
                                           12-15
                                                          Shipments +5.8% to 11.5Mt       Shipments -10.3% to 11.7Mt
        0.8
                                                          EBITDA/t +46.9% to $134/t       EBITDA/t +52.7% to $120/t

                                                          Mining:
                                                          EBITDA -9.2% to $1.3bn
                                                          Iron ore shipments +5.5% to 37.6Mt; Coal shipments -10.7%
 8.4
                                                          FCF breakeven level remains at $40/t CFR China 62% Fe

 FY17 NAFTA ACIS Europe Brazil Mining Others FY18

                                                                                                                       6
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Production impacted by operational disruptions
Nonrecurrence should provide support for 2019 volumes

                                                        • Crude steel production in 2018 v 2017
• Estimated disruption loss of ~2Mt in 2018
                                              •   (scope adjusted for Votorantim and Ilva acquisitions) (Mt)
• 1.0Mt of production losses identified as
  project related and 0.9Mt as unplanned          NAFTA                   -0.9
  outages
                                                   Brazil                                               0.5
• Operational issues faced largely in ACIS
  and NAFTA during 2018                           Europe                                          0.2
• Volume disruptions incurred at other
                                                   ACIS -1.7
  segments earlier in 2018 were recovered
• Focus in 2019 to ensure non recurrence
  of such issues  which should provide
  support for 2019 volumes
                                                    Unplanned outages      0.9

                                                        Project related    1.0

                                                                          2018

                                                                                                               7
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Volumes impacted Action2020 progress
Continued gains in cost/mix improvement offset in part by shipment losses

• 3 years into the Action 2020 improvement plan to       Action 2020 cumulative EBITDA improvement ($bn)
  structurally improve EBITDA by $3bn
• 2018 cost/mix gains of $0.4bn:
                                                          Volume
  ➢ Digital transformation in Europe                                                              3.0
                                                          Cost/Mix
  ➢ Ukraine (coke oven battery savings)
                                                                                                  1.0
  ➢ Brazil (cost & mix improvement)
  ➢ South Africa (improved efficiencies from
    debottlenecking production and top line                          1.5     1.6

    optimisation)                                                    0.3

• Volume progress reversed due to operational            0.9                                      2.0
                                                                             1.6
  disruptions  loss of $0.3bn                                       1.2
                                                         0.9
• $1.6bn cumulative savings from Action 2020 plan
• Company remains focussed on achieving its             2016      2017      2018                2020F
  Action2020 targets                                                                            Target

                                                                                                           8
7 GLOBAL RESOURCES CONFERENCE 2019, LONDON - MARCH 6TH, 2019 - ARCELORMITTAL
Stronger balance sheet
 Significant working capital investment in 2018; release expected in 2019

                    Capital deployment in 2018

                                                                                 Net debt to EBITDA
 Investment
  in working                  ~$4.4bn                                                              3.0
      capital                                                              2.8

                                                           2.3
   Net M&A       $0.4bn
     spend                                                         2.2             2.3     2.2              1.8

                                                                                                                   1.2
     Growth                                                                                                                1.0
      capex     $0.3bn

        Cash
  returned to
ArcelorMittal   $0.3bn
shareholders                                              Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
                                                           2010 2011 2012 2013 2014 2015 2016 2017 2018

                                                                                                                               9
CAPITAL ALLOCATION

                     10
Capital allocation to support strategic goals
Building strong foundations for future returns

   Building the strongest platform for consistent capital returns to shareholders

                                                                   Targeting $6bn net debt – a level of debt
                                                                                                                  Resilient
        Robust balance sheet                                       that should support positive FCF* and IG
                                                                     credit metrics at all points of the cycle    platform

                                                                        Whilst investing in high-return
                                                                                                                 To grow FCF
                 Invest in strengths                                   opportunities with focus and strict
                                                                                   discipline                      potential

                                                                   Progressively increase base dividend with
                              Returns to                                                                         Consistently
                                                                    a commitment to returning a percentage
                             shareholders                             of FCF on attainment of debt target        return cash

 * Free cash flow refers to cash flow from operations less capex
                                                                                                                                11
Investment plan focussed on high-return projects
Additional capex planned in 2019 to fund ILVA as well as mix & cost improvement projects

                                                     Committed to high-return projects (capex, $bn)
  UNIQUE opportunities
   in CORE markets

                                                                               0.4              0.1
                                                             0.5

    Move MIX to most
  attractive end markets
                                                                                                              4.3
                                                          Incremental budget approved including carry-over
                                               3.3

      Increase
  COMPETITIVENESS                             2018           ILVA           Brazil &          Other          2019F
                                                                            Mexico           Strategic
                                                                                             Projects

                                                                                                                     12
Mexico: HSM project
High return mix improvement with future optionality

Project summary:                                                                     US$1.0bn 3Yr investment commitment 
                                                                                     Construction of a new 2.5Mt hot strip mill
• HSM project to optimize capacity and improve mix
  ➢ $1bn project initiated in 4Q’17; expected completion in 2020                     (Mt)          ASC (Million tonnes; flat products)
  ➢ New 2.5Mt hot strip mill to increase share of domestic market (domestic     20
                                                                                                                          17.2           16.6
                                                                                            15.7           16.2
    HRC spreads are significantly higher vs. slab exports)                      15
                                                                                                         John Deere India54%
  ➢ Includes investments to sustain the competitiveness of mining operations                52%            50%                           50%
                                                                                10
    and modernizing its existing asset base
                                                                                5
• ArcelorMittal Mexico highly competitive  low cost domestic slab                                       Share captured by Imports

• Growth market, with high import share                                         0
                                                                                            2015           2016           2017           2018
  ➢ Mexico is a net importer of steel (50% flat rolled products import share)
  ➢ ASC estimated to grow 2.0% CAGR 2015-25; growth in non-auto +2.2%,
    supported by industrial production and public infrastructure investment
• Potential to add $250 million in EBITDA on completion

Project status:

• Deep foundations nearly complete (demobilizing in February); building
  erection progressing on schedule; mill cranes on site, other equipment in
  transit

                                                                                                                                                13
Brazil: Vega high added value capacity expansion
High return mix improvement in one of the most promising developing markets

Project summary:                                                                    3Yr investment to expand rolling capacity →
                                                                                        increase Coated / CRC capacity and
• HAV expansion project to improve mix                                                construction of a new 700kt continuous
  ➢ Completion expected 2021 with total capex spend of ~$0.3bn                    annealing line (CAL) and
                                                                                                     John   continuous
                                                                                                          Deere India  galvanising
                                                                                                   combiline (CGL)
  ➢ Increase Galv/CRC capacity through construction of 700kt continuous
    annealing and continuous galvanising combiline
  ➢ Optimization of current facilities to maximize site capacity and
    competitiveness; utilizing comprehensive digital/automation technology
  ➢ To enhance 3rd generation AHSS capabilities and support our growth in
    automotive market and value added products to construction
• AM Vega highly competitive on quality and cost, with strategic location and
  synergies with AM Tubarão
• Investment to sustain ArcelorMittal Brazil growth strategy in cold rolled and
  coated flat products to serve domestic and broader Latin American markets
• Strengthening ArcelorMittal’s position in key markets as automotive and
  construction through value added products
• Potential to add >$100mn to EBITDA

                                                                                                                                 14
Votorantim consolidates our position in Brazil longs
Multi-year acquisition project concluded in April 2018

• Culmination of a multi-year process that
                                                             Creating the new market leader in Brazil longs
  began in 2014
• Consolidating the Brazil long products
  market
                                                                                             Minas Gerais
• ArcelorMittal now the #1 long products
  producer with annual crude steel capacity of                                                       Monelevade
  5.1Mt.
                                                                                                      Juiz de Fora
• Acquired production facilities are
  geographically complementary, enabling                                                     Rio de Janeiro
                                                                      Sao Paulo
  higher service level to customers, economies                                                      Piracicaba
  of scale, higher utilization and efficiencies.
                                                                 Resende plant                      Barra Mansa plant
• ~$110m of identified synergies on track to be
  fully captured in 2019

                                                   Resende                            Barra Mansa

                                                                                                                        15
ILVA project to turnaround and restore tier-1 status
Multi-year acquisition project concluded in November 2018

• Culmination of a multi-year process that began in 2014           ILVA capex commitment through 2024 (€ bn)
• Improvement plan now underway to:
                                                                                              2.40
   • Increase production to 6Mt near term; then to 8Mt                                                                   2.10
                                                                                                                0.30
     post completion of environmental plan                                  1.25
   • Capture identified synergies (€310m) and realise         1.15
     asset’s potential                                                   Industrial capex
                                                                         includes annual

• Focus on:                                                                maintenance

                                                           Enviromental Industrial          Total capex Riva funds     Net capex
   • Health and safety: Top priority to improve H&S                                                      utilised
     performance underway
   • Investment program underway: Coverage of the
     raw materials stockyards progressing in-line with
     the accelerated timetable
   • Performance and operations: identify gaps with
     ArcelorMittal sites and take actions; adopt                      Progress at the raw material stock yard
     ArcelorMittal commercial approach
   • Integration: use benchmarking

                                                                                                                                   16
Essar: Adding a new high-growth pillar
Essar brings scale, turnaround opportunity and growth optionality

• Essar provides ArcelorMittal an opportunity to buy a producing,                                                                                                        Essar Steel main production
  profitable, cash generating asset at below replacement costs                                                                                                           facilities at Hazira, Gujarat;
                                                                                                                                                                         10Mtpa nominal capacity (current
• ArcelorMittal received approval for acquisition of Essar*                                                                                                              production 6.5Mtpa)
• Upfront payment of $5.7bn** to ESIL creditors with a further
  $1.1bn** capital injection into the business to kickstart
  turnaround
• ArcelorMittal aims to increase shipments to 8.5Mt in medium
  term, with long term target of 12-15Mt through additional
  brownfield capacity expansion
• Iron ore pelletising integration in East India provides optionality:
  14Mtpa pellet capacity → currently being expanded to 20Mtpa
• ArcelorMittal & NSSMC to finance their “India JV” through
  combination of partnership equity (1/3) and debt (2/3)
• Investment in the “India JV” expected to be equity accounted

1                                     2                                      3                                      4                             5

                                                                                 One of the largest single                                            Service centres in
                                                                                                                        Complete basket of flat                                    Access to Port
    High quality raw material             Largest pellet capacity in India       location for flat steel in India                                     competitive locations
                                                                                                                        steel produtcs

    * In-line with Essar Steel India Limited’s (ESIL) corporate insolvency process, the Company’s Resolution Plan must now be formally accepted by India’s National Company Law Tribunal
    (‘NCLT’) before completion **at 73.2 Indian rupees / $1 .
                                                                                                                                                                                                     17
OUTLOOK

          18
Global steel demand
Global Apparent Steel Consumption (ASC) growth of +0.5% to +1.0% forecast in 2019F

               Estimated ASC growth 2018 v 2017*                    Forecast ASC growth 2019F v 2018*

                    US               +1.7%                               US          +0.5% to +1.5%

                EU28                    +2.9%                          EU28           +0.5% to +1.0%

               China                         +3.5%                    China      -0.5% to -1.5%

               Brazil                                +7.3%            Brazil                      +3.5% to +4.5%

                   CIS               +1.8%                              CIS            +1.0% to +2.0%

Global ex China                       +2.1%                  Global ex China              +2.0% to +3.0%

              Global                    +2.8%                        Global          +0.5% to +1.0%

  Source: *ArcelorMittal estimates
                                                                                                                   19
Position to Deliver Value
Global diversified industry leader focussed on maximising per-share value

• Unique global portfolio                                                               ArcelorMittal
                                                          Secure position in mature developed markets   High-growth, with attractive   Access to

• Industry leader in product and                            (with growth exposure e.g. Mexico) with
                                                                  emphasis on HAV leadership
                                                                                                        market structure and gradual
                                                                                                          evolution towards HAV
                                                                                                                                        growth
                                                                                                                                        markets

  process innovation

• Action2020 plan to structurally

                                                                     EUROPE

                                                                                                            BRAZIL
                                                                                            NAFTA
  improve profitability

                                                                                                                            INDIA

                                                                                                                                          ACIS
• Investing with focus and discipline
  in high return opportunities

• Investment grade balance sheet
                                                                                              Mining

• Progressively returning cash                                                (capturing the full value-in-use chain)

                                                                              Investment Grade Balance Sheet

                                                                                                                                                   20
APPENDIX

           21
Appendix

 • SECTION 1 | Cash needs.…………………………………………………….          23
 • SECTION 2 | Trade.……………………………………………………….......        25
 • SECTION 3 | Financials results..……………………………………………..   29
 • SECTION 4 | Steel investments..……………………………………………………   40
 • SECTION 5 | Macro highlights………………………………………………..      46
 • SECTION 6 | Industry leadership…………………………………………….     49
 • SECTION 7 | Auto …………………………………………………………….             54
 • SECTION 8 | Group highlights ………………………..…………………..….   67

                                                              22
CASH NEEDS

             23
Cash needs
Cash needs* to increase in 2019 largely due to increased capex spend on high return opportunities

• Cash needs to increase to $6.4bn in                                                                       Below-EBITDA cash needs ($ billions)
  2019                                                                                                                                                                             6.4
• The $1.4bn increase Vs. 2018 reflects:
   1) $1bn increase in capex (including                                                                                                                                            1.5
                                                                                                                                                      5.0
      $0.4bn carryover from 2018)
                                                                                             Taxes**, pension and other                               1.1                          0.6
   2) Cash taxes deferred from 2018
   3) Non recurrence of certain cash                                                                                   Net interest                   0.6
      gains in 2018
• Unplanned working capital investment in
  2018 is expected to be released in 2019                                                                                                                                          4.3
                                                                                                                                Capex                 3.3
• As a result, Company should achieve
  more significant net debt progress in
  2019
                                                                                                                                                    2018                       2019F
* Cash needs of the business consisting of capex, cash paid for interest and other cash payments primarily for taxes and excluding for these purposes working capital investment
** Estimates for cash taxes in 2019 largely reflect the taxable profits of 2018

                                                                                                                                                                                         24
TRADE

        25
EU trade
Comprehensive solution for unfairly trade imports required

Trade cases (Flat steel):
• All key flat rolled steel products Anti-dumping and countervailing duty cases have been implemented
• Monitoring for unfairly traded imports ongoing

Safeguard duties:
• On January 17, 2019, EU Member states approved the European Commission’s (EC’s) final safeguard measures
  on steel with implementation to begin February 4, 2019
• Final measures include immediate “relaxation”, increasing quota by 5% (calculated on base years of 2015-2017),
  with further 5% relaxation in July 2019 and another 5% in July 2020, subject to review
• Final measure give country-specific quotas to main steel exporters to EU; remaining residual quote for other
  countries to be quarterly, however countries with own quota can consume residual quote once they have used up
  their own
• Certain 'developing' countries with a share of imports of
NAFTA trade
Comprehensive solution for unfairly trade imports required

Trade cases:
•   All key flat rolled steel products AD/CVD cases have been implemented.
•   Anti-circumvention investigations initiated by DOC for CRC and CORE imports from China (through Vietnam); final affirmative
    determination received May 17, 2018
•   On June 12, 2018, the US industry filed anti-circumvention petitions with DOC for CRC and CORE imported from Korea and Taiwan
    (through Vietnam).

Section 232 US:
•   March 23, 2018: 25% tariffs imposed on all steel product categories began for most countries
•   June 1, 2018: 25% tariffs imposed on steel products in Europe, Canada & Mexico (no change despite agreement on NAFTA as still
    awaiting Canada) with the following exceptions:
    • South Korea: Quota of 70% of 2015-2017 av. export volumes into US
    • Brazil: Quota of 2015-2017 average export volumes into US - 70% for finished products; 100% for semi-finished products
    • Argentina: Quota of 135% of 2015-2017 average exports
    • Australia: completely exempt from tariffs and quotas
    • August 30, 2018: Trump issued a proclamation whereby there is now a product exclusion request process in place for countries
       where there is a quota, i.e. S. Korea, Argentina and Brazil
    • Turkey: duties doubled to 50% from 25% due to currency devaluation

Canada and Mexico response to Section 232:
•   Canada: 25% retaliatory tariffs on US imports for most steel products, Provisional safeguard measures announced on October 11,
    2018 on 7 steel products (hot rolled, prepaint, rebar, wire rod, energy tubulars, plate and stainless wire)
•   Mexico: 15-25% retaliatory tariffs on US imports for most steel products; Safeguard duties of 15% already in place for countries with
    no free trade agreement
                                                                                                                                            27
FINANCIAL RESULTS

                    28
Operating results for 4Q’18
Quarterly results impacted by sequential seasonal slowdown and operational issues

• EBITDA: $2.0bn (-8.9% vs.4Q’17); 12M’18 $10.3bn
                                                                                 EBITDA progression ($bn)
  (+22.1% YoY)

• Steel performance lower QoQ: impacted by negative
  price-cost effect and lower steel shipments (-1.5%) to                                                 +22.1%
  20.2Mt
                                                                                                              10.3
• Mining performance higher QoQ: Impacted by                                   -8.9%
  higher marketable iron ore shipments (+16.8% QoQ);
                                                                                2.7                  8.4
  12M’18 at 37.6Mt (+5.5% YoY)

• Net income: at $1.2bn vs $0.9bn in 3Q’18                              2.1
                                                                                         2.0
• Working capital release of $0.4bn in 4Q’18
                                                                      $102/t   $133/t   $96/t        $99/t   $122/t
• Net debt of $10.2bn as of Dec 31, 2018 as compared
  to $10.1bn as of Dec 31, 2017

                                                                      4Q’17    3Q’18    4Q’18      12M’17    12M’18

Note: YoY refers to 12M’18 vs. 12M’17; QoQ refers to 4Q’18 v 3Q’18;                                                   29
Steel performance for 4Q’18
Steel-only EBITDA increased YoY but declined QoQ (in all segments)

12M’18 steel-only EBITDA up +28.4% YoY primarily                             Steel only EBITDA ($bn) and EBITDA/t ($/t)
due to positive price-cost effect (PCE) with all segments
improving                                                                            -34.3%
                                                                                                                +28.4%
                                                                                  2.4
4Q’18 steel-only EBITDA down 34.3% vs. 3Q’18                                                                           9.0
                                                                      1.9
• ACIS: EBITDA down -55.7%  Negative price-cost                                            1.6            7.0
  effect and lower shipments (operational issues in
  Kazakhstan)                                                        $89/t      $119/t     $79/t         $82/t     $107/t
• Brazil: EBITDA down -37.2%  Negative price-cost
  effect                                                             4Q’17      3Q’18      4Q’18         12M’17 12M’18
• NAFTA: EBITDA down -33.2%  Lower steel
  shipments and negative price-cost effect                                    3Q’18 to 4Q’18 steel only EBITDA ($mn)
• Europe: EBITDA down -14.0%  Performance
  primarily impacted by negative price-cost effect

                                                                                 -247
                                                                       2,448             -165
                                                                                                  -122           -57
                                                                                                         -249          1,608
                                                                       3Q’18 NAFTA Brazil Europe ACIS Others 4Q’18
Note: YoY refers to 12M’18 vs. 12M’17; QoQ refers to 4Q’18 v 3Q’18                                                             30
Mining performance for 4Q’18
Mining profitability positively impacted by higher shipment volumes and iron ore prices

• Mining performance:
                                                                                     Mining EBITDA ($mn)
   • 4Q’18 EBITDA improved 22% QoQ primarily due
     to higher market priced iron ore shipments
     (+16.8% QoQ)                                                            +22%                       -9.2%
   • FY’18 EBITDA declined 9.2% YoY primarily due to                                 343        1,407
     weaker coal performance driven by lower                         281
     volumes.                                                                                                   1,278
• Growth: Market priced iron ore shipments grew
  5.5% in 2018 YoY
                                                                     3Q’18          4Q’18       12M’17        12M’18
• Focus on quality: ongoing commitment on quality,
  service and delivery
                                                                              Marketable iron ore shipments (Mt)
• Cost focus maintained: FCF breakeven remains
  $40/t
                                                                            +16.8%                      +5.5%
                                                                                     10.0                       37.6
                                                                      8.5
                                                                                                 35.7

                                                                     3Q’18          4Q’18       12M’17        12M’18
Note: YoY refers to 12M’18 vs. 12M’17; QoQ refers to 4Q’18 v 3Q’18                                                      31
4Q 2018 EBITDA to net results
Positive net income in 4Q 2018
                                                                                    BASIC EPS                                  4Q’18
($million)                                                                          Weighted Av. No. of shares (in millions)   1,014
                                                                                    Earnings per share                         $1.18
                                          Includes $0.1bn in
                                         currency translation
                                       gains following disposal                              Includes $0.8bn deferred tax
                                             of MacSteel                                      benefits recorded mainly in
             (723)                                                                          Luxembourg on expected higher
                                                                                                     future profits

                                                                  227      (140)
                       (215)
                                          29
   1,951
                                                                                           (556)                      620
                       Related to
                      acquisition of                                                                                           1,193
                     ILVA and ILVA                    1,042             Primarily
                        remedies
                                                                        MTM on
                                                                         MCB                              573

  EBITDA     D&A     Impairment Exceptional Operating   Income Net interest   Forex                      Pre-tax   Taxes and Net income
                       net of     items      income       from    expense and other                      income        non-
                      purchase                        investments           fin. result                            controlling
                        gains                                                                                       interests
                                                                                                                                       32
4Q 2018 EBITDA to free cashflow
FCF positive $1.0bn

($million)

                                                                              (211)
                                              430

                                                                                                                                  (1,156)

                                                                                                              2,170
           1,951

                                                                                                                                                1,014

         EBITDA                         Change in                           Other                     Cash flow from              Capex     Free cash flow
                                         working                          financing                    operations
                                         capital*                            costs
 * Change in working capital: cash movement in trade accounts receivable plus inventories less trade and other accounts payable
                                                                                                                                                             33
3Q’18 v 4Q’18 Net debt
Net debt declined – September 30, 2018 vs. December 31, 2018

($million)

                                                                   32                       37

                      1,014
                                                                               Includes
                                         699                                 $0.1bn forex
                                                                                 gain

      10,516
                                                                                                   10,196
                                               Primarily includes $1bn
                                               investment for the Uttam
                                               Galva and KSS Petron debts,
                                               offset by MacSteel disposal
                                               ($0.2bn)

  Net debt at     Free cash flow         M&A             Minority dividends Forex and other       Net debt at
 Sept 30, 2018                                                                                   Dec 31, 2018
                                                                                                                34
FY 2018 EBITDA to net results
Healthy net results for the full year 2018
                                                                                       BASIC EPS                                        2018
($million)                                                                             Weighted Av. No. of shares (in millions)         1,015
                                               Include $0.6bn for
                                                                                       Earnings per share                               $5.07
                                           acquisition of ILVA and
                                              ILVA remedies and
                                          remedy package required
                                                                                         Includes income from
                                          for Votorantim acquisition                                                        Includes $0.8bn
             (2,799)                                                                      Calvert and Chinese
                                                                                                                          deferred tax benefits
                                                                                             investees and
                                                                                           Erdemir dividend                recorded mainly in
                                                                                                                             Luxembourg on
                                                                                                                            expected higher
                            (810)                                      652       (615)                                        future profits
                                            (117)
                                                                                              (1,595)
  10,265                                                                                                                  168
                  BF dismantling in Florange
                   ($0.1bn); new CLA in US                               Primarily forex and MTM on
                 (including signing on bonus)             6,539             MCB partially offset by
                   ($0.1bn); settlement fees                             premium on early repayment                                    5,149
               ($0.1bn); offset in part by $0.2bn
                                                                                                                4,981
                                                                                   of bonds
                PIS/Cofins tax credits in Brazil

  EBITDA      D&A        Impairment Exceptional Operating   Income Net interest   Forex                     Pre-tax     Taxes and Net income
                           net of     items      income       from    expense and other                     income          non-
                          purchase                        investments           fin. result                             controlling
                            gains                                                                                        interests
                                                                                                                                                  35
FY 2018 EBITDA to free cashflow
FCF positive $0.9bn despite $4.4bn investment in working capital in 2018

($million)

                                           (4,384)

          10,265                                                            (1,685)

                                                                                                                                  (3,305)
                                                                                                              4,196

                                                                                                                                                 891
         EBITDA                         Change in                           Other                     Cash flow from              Capex     Free cash flow
                                         working                          financing                    operations
                                         capital*                            costs
 * Change in working capital: cash movement in trade accounts receivable plus inventories less trade and other accounts payable
                                                                                                                                                             36
FY 2017 v FY 2018 Net debt
Net debt stable - December 31, 2017 vs. December 31, 2018

($million)

                                                                                      76
                                                                         119
                                                             101
                                           226
                 891

                              423

   10,142                                                                                        10,196

                                         Primarily includes $1bn
                                         investment for the Uttam
                                         Galva and KSS Petron debts,
                                         offset by MacSteel disposal
                                         ($0.2bn) and sale of
                                         tangibles assets ($0.2bn)

 Net debt at     Free        M&A      ArcelorMittal Dividend            Minority     Forex      Net debt at
Dec 31, 2017   cash flow               Share buy    paid to AM         dividends   and other   Dec 31, 2018
                                         back      shareholders                                               37
Liquidity and debt maturity
Investment grade rated by all three rating agencies

            Liquidity at Dec 31, 2018 ($bn)                                                                   Debt maturities at Dec 31, 2018 ($bn)

                                    7.9
                                                                                                                                                      Other loans
                   Cash             2.4                                               1.0                                                             Commercial paper
                                                                                                         1.3
                                                                                                                                                      Bonds

                                                                                                                                                                0.3
                                                                                      1.3                               0.5          0.2

Unused credit lines                 5.5
                                                                                                         1.9
                                                                                                                                     1.5         0.3            1.6
                                                                                                                        1.3
                                                                                      0.9
                                                                                                                                                 0.5

                             Liquidity at                                           2019                2020           2021         2022        2023          ≥2024
                            Dec 31, 2018

 Liquidity lines                                                               Debt Maturity:                                   Ratings*:

 • $5.5bn lines of credit refinanced with                                      • Continued strong liquidity                     • S&P: BBB-, stable outlook
   5 year maturity Dec 19, 2023
                                                                               • Average debt maturity →
                                                                                                                                • Moody’s: Baa3, stable outlook
                                                                                 4.0 years
                                                                                                                                • Fitch: BBB-, stable outlook
*Investment grade credit rating upgrades: S&P in February 2018, Moody’s in June 2018 and Fitch in July 2018
                                                                                                                                                                      38
STEEL INVESTMENTS

                    39
Indiana Harbor - USA Footprint
Footprint optimization complete

• Current configuration uncompetitive  structural
  changes required across all cost elements
• #1 aluminize, 84” hot strip mill (HSM), #5 continuous
  galvanizing line (CGL), and steel shop No.2 now idled;
  all planned asset consolidation now complete
• Investments totalling ~US$200m:
   • New caster at No.3 steelshop installed &
     commissioned 4Q’16 and restoration of 80” hot strip
     mill and IH finishing complete
   • Project completed in 2018
                                                                                      No. 3SP: New #2 Caster

               Indiana Harbor Plant       80”HSM: 5 Walking Beam Furnace No. 3SP: New #23SP:
                                                                                    No.  Caster
                                                                                             Newcommissioning
                                                                                                  Downcomer
                                                                                                               40
Kryvyi Rih – New LF&CC 2&3
Kryvyi Rih investments to ensure sustainability & improve productivity

• Facilities upgrade to switch from ingot to continuous casting
  route; additional billets capacity of 290kt/y
  • Industrial target:
     • Step-by-step steel plant modernization with state-of-art
       technology
     • Product mix development
  • Supportive target:
     • Cost reduction
     • Billet quality improvement for sustaining customers
     • Better yield and productivity
  • Project completion expected in 2019

                                                         Construction
                                                        site of LF&CC
                                                              2&3
                                                              
                                                                         41
ArcelorMittal Poland Sosnowiec Wire Rod Mill
Long products strategy to grow HAV

• Sosnowiec is a double strand rolling mill located in Sosnowiec, Poland.
• The investment will introduce new and innovative techniques for the
  production of high quality wire rod for high demanding applications
  (automotive app., steel cords, welding wires, cold heading screws,
  suspension springs, special ropes)
• Investment features and benefits:
   • Splitting intermediate mill stands / new motors / drives avoiding twisting
   • Modernized finishing blocks for rolling speed increasing up to 100m/s
   • New state of art air distribution system and ring distributor
   • New water boxes with accurate process control
   • Reduced tensile strength variation, improved grain size/ surface quality
• Scope of equipment to be installed in WRM Sosnowiec in 2018:
• New guiding equipment for finishing blocks, new water boxes (traversing
  type), new laying heads (new type), new fans for air cooling conveyors, new
  air distribution system for fans, new automation control system for water
  boxes and fans (water and air cooling)
• Project completion expected in 2019

                                                                                  42
Dofasco - Hot strip mill modernisation
Investments to modernize strip cooling & coiling flexibility to produce full range of target products

• Replace existing three end of life coilers with two state
  of the art coilers and new runout tables. The strip
  cooling system will be upgraded and include
  innovative power cooling technology to improve
  product capability
• Benefits of the project will be:
   • Improved safety
   • Increased product capability to produce higher
     value products
                                                                                      PROJECT: HSMM
   • Cost savings through improvements to coil quality,                            DATE: OCTOBER 2018
     unplanned delay rates, yield and improved energy             IMAGE: COILER AND INSPECTION AREA CIVIL CONSTRUCTION

     efficiency
• Project completion expected in 2020

                                                                                                                         43
Burns Harbour – Walking beam furnaces
Expands surface capability to provide sustained automotive footprint

 • Install 2 latest generation walking beam furnaces,
   including recuperators & stacks, building extension &
   foundations for new units
 • Benefits associated to the project:
    • Hot rolling quality and productivity
    • Sustaining market position
    • Reducing energy consumption
 • Project completion expected in 2021

                                                                       44
MACRO HIGHLIGHTS

                   45
Regional inventory
Inventory levels in key regions in line with historical averages

   German inventories (000 Mt)*                                                                      US service centre total steel inventories (000 Mt)
                                                  (latest data point: Dec-2018)        5.0                                                 (latest data point: Dec-2018)
    1,400                                                Germany Stocks                              13,000                                                                3.4
                                                                                       4.0                                    USA (MSCI)
                                                         Months supply (RHS)                                                                                               3.2
    1,200                                                                                                                     Months Supply (RHS)
                                                                                                     11,000                                                                3.0
                                                                                       3.0
    1,000                                                                                                                                                                  2.8
                                                                                                      9,000
       800                                                                             2.0                                                                                 2.6
                                                                                                      7,000                                                                2.4
       600                                                                             1.0
                                                                                                                                                                           2.2
       400                                                                             0.0            5,000                                                                2.0

    Brazil service centre inventories (000 Mt)                                                       China service centre inventories** (Mt/mth) with ASC%

                 Flat stocks at service centres                                                               Flat and long          (latest data point: Dec-2018)
   1,400                                            (latest data point: Dec-2018)      7.0
                                                                                                     25                                                                    50%
                 Months Supply (RHS)
   1,200                                                                               6.0           20                                                                    40%
   1,000                                                                               5.0
                                                                                                     15                                                                    30%
     800                                                                               4.0
                                                                                                     10                                                                    20%
     600                                                                               3.0
     400                                                                               2.0            5                                                                    10%
     200                                                                               1.0            0                                                                    0%

 * German inventories seasonally adjusted **Source: WSA, Mysteel, ArcelorMittal Strategy estimates
                                                                                                                                                                                 46
Chinese exports
Chinese exports declined 8% YoY to 70Mt in 2018

                                                                                  (latest data point: Jan-2019)
                   12
                                              Exports of steel products
                                              Imports of steel products
                   10
                                              Net-trade
                       8

                       6

                       4

                       2

                       0

                       -2

                       -4
                         2007    2008     2009     2010   2011    2012    2013   2014   2015    2016    2017      2018   2019

                   •        Jan’19 finished steel exports of 6.2Mt up +11.0% MoM (Dec’18 at 5.6Mt)
                   •        Jan’19 exports up +33.1% vs Jan’18 (4.7 Mt)
                   •        12M’18 finished steel exports of 70Mt down 8.0% vs 12M’17

Source: ArcelorMittal Corporate Strategy team analysis                                                                          47
China addressing capacity issues
    Supply side reform progressing – global overcapacity still a concern

•     Chinese government committed to tackle overcapacity and
      environmental issues
                                                                           Target achieved to cut 140Mt
•     Capacity reduction target met: 140Mt capacity cut achieved           permanent capacity by end of
      by end of 2018                                                                   2018

•     Steel replacement policy in favour of EAF v BF; no new
      capacity to be built → ratio 1:1 for EAF and 1:1.25 for BF-
      BOF
•     Industry operating at high rates of capacity utilisation →             Additional ~120Mt illegal
      higher domestic steel spreads                                         induction furnace capacity
                                                                                      closed
•     Stronger domestic fundamentals plus global trade restrictions
      → reduced incentive to export
•     3yr Blue Sky Campaign (2018-2020) with stringent emissions
      standards
•     Winter capacity constraints supporting fundamentals through             Steel exports reduced
      seasonally weaker demand period; delayed start in 2018, but
      overall expectation that 2018/2019 policy will be broadly
      similar YoY

                                                                                                          48
INDUSTRY LEADERSHIP

                      49
Leadership through innovation continues
R&D strength to drive innovation and maintain industry leadership position

                                                                  Revolutionary technology in Carbon
   Steligence®: A radical new concept for
                                                                  Capture & Utilization (CCU) to convert
   the use of
                                                                  BF carbon gas into bioethanol
   steel in construction
                                                                  • In partnership with LanzaTech, €150m project
   • Aims to deliver significant architectural and
                                                                    in Gent, Belgium, broke ground Jun’18 with
     sustainability benefits to construction
                                                                    commissioning expected in mid 2020
     customers
                                                                  • Significant potential to revolutionize blast
   • Awarded the Steelie in the ‘Excellence in Life
                                                                    furnace carbon emissions capture and
     Cycle Assessment’ category in October 2018
                                                                    support decarbonization of the transport
                                                                    sector

Automotive: Recognized leader
by automotive customers
• Consistently ranked #1 in technology
  by the majority of OEMs
• Addressing automotive platforms of
  the future with new projects for rapidly
  growing Electric Vehicle (EV) market

                                                                                                                   50
Industry Leadership: Automotive
Global leader in automotive steel and solutions

• 2018 R&D spend $0.3bn
      • Automotive R&D ~1/3 of this budget
      • 1,400 full time researchers
      • 10 worldwide research centres in Europe / Americas
        including 6 dedicated to automotive
• Majority of OEMs in EU & NAFTA rank ArcelorMittal #1
  in Technology – Steel will remain key material for the
  body structure application
• Leader in AHSS* in both EU & NAFTA with the broadest
                                      12-15
  portfolio of AHSS grades
• Achieved significant recognition from automakers for
  commitment to innovation, performance, quality and
  supplier diversity:
      • (Ford; Honda R&D Americas Award; GM Supplier IMPACT
        Diamond Award; GM Supplier Quality Excellence for AM/NS
        Calvert; Nissan’s Supplier Diversity Award; and Automotive   World’s first inner & outer door ring system – a co-engineering feat
                                                                     between ArcelorMittal, Honda R&D Americas and Magna - unveiled
        News’ PACE Award Finalist for inner and outer door ring      at WCX18 for 2019 Acura RDX
        system in 2019 Acura RDX
                                                                     ArcelorMittal Tailored Blanks Division produced 2 millionth door
                                                                     ring on Oct. 26, 2018
*AHSS: Advanced High Strength Steels
                                                                                                                                            51
Industry Leadership: Steligence®
A radical new concept for the use of steel in construction

• Steligence® is based on extensive scientific research,
  independently peer-reviewed
• Makes the case for a holistic approach to construction
  that breaks down barriers, encouraging collaboration
  between construction industry professionals
• Designed to resolve the competing demands of
  creativity, flexibility, sustainability and economics
• Delivers efficiencies, benefits and cost savings to
  architects, engineers, construction companies, real
                                             12-15
  estate developers, building owners, tenants and urban
  planners
• Will facilitate the next generation of high performance
  buildings and construction techniques, and create a
  more sustainable life cycle for buildings
• Our new Headquarters building is designed to
  showcase the Steligence® concept

                                                             52
Industry Leadership: Transformation technologies
Technology to potentially revolutionise the capture of BF carbon gas and convert it into bioethanol

• €150million project between ArcelorMittal & LanzaTech in Gent, Belgium, broke ground June 2018
• Technology to potentially revolutionise the capture of BF carbon gas and convert it into bioethanol
• Licensed by LanzaTech, a proprietary microbe feeds on carbon monoxide to produce bioethanol, to be used as
  transport fuel or potentially in the production of plastics
• Annual production of bioethanol from this demonstration expected to reach around 80m litres, which will yield an
  annual CO2 saving equivalent to 600 flights from London to New York
• The new installation will create up to 500 construction jobs over the next two years and 20 to 30 new permanent
  direct jobs. Commissioning and first production is expected by mid-2020
                                           12-15

                                                                                                                     53
AUTO

       54
No1 in automotive steel: Maintaining leadership position
Group continues to invest and innovate to maintain leadership

• ArcelorMittal is the global leader in steel for automotive with   S-in motion®
  strongest position in Europe and North America
• Global R&D platform provides a material competitive
  advantage
• Proven record of developing new products and affordable
  solutions to meet OEM targets
• Advanced high strength steels used to make vehicles lighter,
  safer and stronger
• Automotive business backed with capital with ongoing
  investments in product capability and expanding our
  geographic footprint:                                             AM/NS Calvert

     • AM/NS Calvert JV: Enhancing our NAFTA automotive
       franchise
     • VAMA JV in China: Auto certifications progressing
     • Dofasco: Galvanizing line expansion
     • Europe: AHSS investments

                                                                                    55
Global presence and reach
  Global supplier with increasing emerging market exposure
                                                                                                                                                        Locations, by region

                                                                                                                                                      Automotive production facilities

                                                                                                                                                      Alliances & JV

                                                                                                                                                      Commercial teams

                                                                                                                                                      R&D centers

Vehicle production 2018
       by region
 > 20 M veh
 > 15 M veh & < 20 M veh
 > 10 M veh & < 15 M veh
 > 5 M veh & < 10 M veh
 > 2.5 M veh & < 5 M veh
 > 1 M veh & < 2.5 M veh
  > 1 M veh & 0.1 M veh
 < 0.1 M veh
                           Source: LMC figures for Western and Eastern Europe and Russia; IHS figures for all other regions; personal cars and light commercial vehicles < 6t
                           NB: Middle East & North Africa region: Iran, Uzbekistan, Kazakhstan, Morocco, Egypt
                              South East Asia region: Indonesia, Philippines, Thailand, Vietnam, Pakistan                                                                        56
Automotive growth in developed world
North American production at healthy levels,
EU28 & Turkey production with modest growth

 North America and EU28 + Turkey vehicles production
 million units
                                                       • North American production:
                                                           -   modest decline in the short term
                                                               but still healthy production levels
                                                           -   expected to regain the 17m unit
                                                               production level around 2022
                                                               driven by population growth,
                                                               portfolio expansion and
                                                               localization

                                                       • EU28 & Turkey production: modest
                                                        growth expected with uncertainty linked
                                                        to Brexit and US Tariffs

                                                                                                     57
Automotive emerging market growth
 Strong growth expected in India, China and Brazil

     China vehicle production (‘000s)
  35,000                                                  33,940
              China
  33,000                                                           • China production to grow by ~26% by 2026
  31,000
                                                                    (from 27mvh in 2018 level 34mvh by 2026)
  29,000

  27,000
                26,955                                             • India production to increase ~70% by 2026
  25,000

                                                                    (from 4.8mvh in 2018 to 8.2mvh in 2026)

     Brazil, India & Russia vehicle production (‘000’s)
   9,000                                                           • Brazil production growth expected to
   8,000         Russia   India    Brazil                  8,230
   7,000
                                                                    continue and reach 3.9mvh in 2026 (~40%)
   6,000
   5,000       4,754
   4,000
                                                           3,952   • Russia production is expected to recover
   3,000
               2,748
   2,000                                                   2,395    and reach 2.4mvh in 2026 (~46%)
   1,000       1,635
        0

Source: IHS                                                                                                     58
ArcelorMittal S-in motion®
 Demonstrating the weight saving potential of new products

   › ArcelorMittal generic steel solutions include BIW, closures, chassis parts and seats

 S-in motion® S-in motion® S-in motion®                   S-in motion®      S-in motion® S-in motion® S-in motion®         S-in motion®      S-in motion®
ICE C-Segment    Electric  Plug-in Hybrid                  D-Segment          Mid-size     Mid-size       Light               Pick-up            Truck
               C-Segment    C-Segment                       EU market          Sedan         SUV      Commercial              Trucks             Cabs
                                                                               NA market

 -70kg (-18%) vs    -60kg (-15%) vs   -50 kg (-16%) vs    -98 kg (-25%) vs -86 kg (-23%) vs -102 kg (-20%) -45kg (-20%)    -174 kg (-23%)     -54 kg (-17%)
   current ICE        current ICE      current PHEV      BIW and closures current Mid-size vs current SUV About 140 parts    vs current         vs current
    baseline           baseline           baseline       current baseline sedan baseline       baseline      upgraded     Pick-up baseline    cab baseline

   Twist beam           Suspension            Control arms              Front subframes     Pick-up frame       NA rear subframe             Front seat
  Up to 17% of           -4 kg (-18%)      Up to 26% of potential           Up to 15%        -55 kg (-23%) vs      -5.9 kg (-20%) vs      -2 kg (-18%) vs
 mass-savings for       using flat and        weight-savings             of mass-savings     current Pick-up      current D-segment     current C-segment
   C-segment            long products                                     on C-segment        frame baseline            baseline           seat baseline
    vehicles                                                                 vehicles
Continuous innovation
Steel to remain material of choice for automotive

                                              Jet Vapor Deposition (JVD) line : Jetgal ®                                                  Steel remains material of choice
                                              • JVD line is a breakthrough technology to
                                                produce Jetgal®, a new coating for AHSS steels
                                                for automotive industry

                                              New press hardenable steels (PHS) Usibor®2000 &
                                              Ductibor®1000
                                              • Bring immediate possibilities of 10% weight
                                                saving on average compared to conventional
                                                coated PHS produced by ArcelorMittal

                                                                                                                                           •      Electric vehicles (EV) to favour lightweight
                                              3rd Generation AHSS products (CR/GI/GA)                                                             designs (similar to traditional vehicles)
                                              980HF & 1180HF                                                                               •      EV employ AHSS to achieve range goals
                                              • HF / Fortiform® provide additional weight
                                                reduction due to enhanced mechanical properties
                                                compared to conventional AHSS
                                                                                                                                           The mass-market Tesla Model 3 body and
                                                                                                                                           chassis is a blend of steel and aluminium,
                                              Electrical steels
                                                                                                                                           unlike the Tesla Model S which is an aluminium
                                              iCARe®, 2nd Generation                                                                       body (Source: Tesla website+)
                                              • Family of electrical steels for electrified powertrain
                                                                                                                                           + https://www.tesla.com/compare
                                                optimization and enhanced machine performance,
                                                Save*, Torque** and Speed*** are specifically                                                 http://automotive.arcelormittal.com/ElectricVehiclesImpactOnSteel

                                                designed for a typical electric automotive
                                                application.
* Save (Steels with very low losses): Ideal for the efficiency of the electrical machine. Their key role is maximize the use of the current coming from the battery.
 ** Torque (Steels with high permeability): They achieve the highest levels of mechanical power output for a motor or current supply for a generator
 *** Speed (Steels for high speed rotors): Specific high strength electrical steels which maintain high level of magnetic performance. They allow the machine to be more compact and have a higher power density.   60
                                                                                                                                          -
Continued investment in R&D
Supports portfolio of next generation auto steels

Fortiform®             Third-generation UHSS for cold
                                                                MartINsite®    A family of cold rolled fully
                       stamping. Fortiform® and HF steel                       martensitic steels with current
HF Grades              grades allow OEMs to realize                            tensile strengths from 900 to 1700
                       lightweight high-strength structural                    MPa. ArcelorMittal’s MartINsite®
                       elements using cold forming                             cold roll family of fully martensitic
                       methods such as stamping.                               steels is perfect for anti-intrusion
                       Commercially launched in Europe                         parts such as bumper and door
                       in 2014 and available in North                          beams. Some are also available
                       America at Calvert                                      in with an electrogalvanized
                                                                               coating or with Jetgal®.

                       Press hardenable steels (PHS) / hot                     JVD is a breakthrough process, In
 Usibor® 2000          stamping steels offer strengths up to    JVD -Jetgal®   production and product
                                                                               development.
                       2000 MPa. Usibor® 2000 and
 Ductibor®1000         Ductibor® 1000 can also be combined      Jetskin®       Jetgal® : JVD zinc coating applied
                       thanks to laser welded blanks (LWB)                     to steel grades for the automotive
                       to reduce weight while achieving                        industry. Developed for steels
                       optimal crash behavior. Both currently                  including UHSS Fortiform®;
                       available in Europe; Usibor® 2000 is                    Jetskin® : JVD zinc coating
                       commercially available in Europe and                    applied to steel grades for
                       available for qualification testing in                  industrial applications such as
                       North America; Ductibor® 1000 is                        household appliances, doors,
                       commercially available in Europe and                    drums and interior building
                       North America                                           applications.
                                                                                                                  61
2019 Chevy Silverado
reduces weight and increases strength with AHSS

•   Chevrolet claims its all-new 2019 Silverado is 450 pounds (204 kg)
    lighter, supported by extensive use of mixed materials.
•   For example, a higher-grade alloy is used in the
    roll-formed, high-strength-steel bed floor,
    contributing to a bed that is more functional
    and lighter weight.
•   The safety cage features significant use of
    advanced high strength steels, each
    tailored for the specific application.

                                                  “This use of mixed materials and advanced
                                                  manufacturing is evident throughout the
                                                  Silverado, resulting in a significant reduction
                                                  in total vehicle weight and improved
                                                  performance in many measures.”

                                                  Source: Chevrolet’s press release about its all-new Silverado, December 2017.

                                                                                                                                  62
Automotive Industry Leadership
Audi switched back to steel for its new A8 model

    •   Audi switched back to steel
        for its 2018 A8 model, with a
        body structure made up of
        more than 40% steel
        including 17% PHS

                                                                                New Audi A8 2018 model

              “There will be no cars made of aluminium alone in the future.
         Press hardened steels (PHS) will play a special role in this development.
                PHS grades are at the core of a car’s occupant cell, which
                 protects the driver and passengers in case of a collision.
                         If you compare the stiffness-weight ratio,
                           PHS is currently ahead of aluminium.”
                           Dr Bernd Mlekusch, head of Audi’s Leichtbauzentrum

                                                                                                         63
Volvo XC40
2018 European Car of the Year, makes use of AHSS and boron steels for safety
Hot-formed boron steel accounts for 20% of the XC40’s total body weight

 • The safety cage around the occupants of Volvo’s new XC40 is almost entirely
   made from steel including hot-formed boron grades.
 • The steel cage provides maximum occupant protection in all types of crash
   scenarios.

  Volvo Car Group President & CEO Håkan           AHSS makes up most of the XC40’s safety cage
  Samuelsson at the European Car of the           [Images courtesy Volvo Car Group]
  Year award ceremony
                                                                                                 64
RAM pick-up truck
    2019 Dodge RAM 1500 frame uses 98% high-strength steel

    • “New (Ram 1500) frame features
      98% high-strength steel to improve
      durability, weight, and rigidity for
      improved handling.”

                                                     “The new 2019 Ram includes 54% AHSS in the
                                                    truck bed and cab, and 98% in the frame, and is
                                                      credited with a 225 lb. (102 kg) weight savings
                                                     overall, along with 25% fuel economy and 20%
                                                      towing capacity improvements,” Mike Manley,
                                                      head of Ram brand during 2019 NAIAS press
                                                                        conference

Source: RAM 1500 announcement
                                                                                                        65
VAMA greenfield JV facility in China
Well positioned to supply growing Chinese auto market

                                                                                                                            VAMA: Valin ArcelorMittal Automotive target
•    State-of-the-art production facility capacity of 1.5Mt
                                                                                                                            areas and markets
•    Well-positioned to serve growing automotive market
                                                                                                                                                                               FAW-VW &
•    VAMA has successfully completed homologation on UHSS/AHSS                                                                                                                 BMW
     with most key auto OEMs                                                                                                                                      Daimler &
                                                                                                                                                                  Nissan
Latest developments 2018:
                                                                                                                                                                 Beijing
•    VAMA top products (Usibor® 1500, Ductibor®500, DP980 and
     DP780) are approved by large number of end users and sold to
     Tier 1 stamper market.
•    Overall positive progress in product development and
                                                                                                                                                                              Geely, VW, GM, KIA,
     homologation by auto OEMs. VAMA started series supply of                                                                   BYD, Changan,
                                                                                                                                                                              SAIC & Chery
                                                                                                                                Suzuki, CFMA &
     exposed products since 2017Q4                                                                                              FAW-VW                                                Shanghai

•    VAMA received Best Supplier award from International & local                                                                                                             Changfeng, Fiat,
     stamper                                                                                                                                                                  DPCA, Dongfeng,
                                                                                                                                                                   VAMA       Honda, JMC & Suzuki
                                                                                                                                                      Loudi

                                                                                                                                             SAIC, Toyota, GM,
                                                                                                                                             Honda, Nissan & BYD           Guangzhou

                                                                                                                                     •    Central office in Changsha with satellite offices in proximity
                                                                                                                                          to decision making centers of VAMA’s customers
         Furnace of CGL and CAL on both sides                         VAMA HQ in Loudi city, Hunan Province

BYD: Build Your Dreams; CFMA: Changan Ford Mazda Automobile; SAIC: Shanghai Automotive Industry Corporation; JMC: Jiangling Motors Corporation                                                      66
GROUP HIGHLIGHTS

                   67
Group performance FY18 v FY17
    Improved performance driven by positive price-cost effect offset by lower volumes

•    Crude steel production decreased by 0.6% to 92.5Mt with decreases in ACIS (-
                                                                                               EBITDA ($ Millions) and EBITDA/t
     11.3%, due to operational disruptions in Ukraine and Kaz.) and NAFTA (-3.9%,                $102/t     $133/t          $96/t   $99/t             $122/t
     including BF reline delay in Mexico), offset in part by Brazil (+9.4%, scope effect of
     Votorantim) and Europe (2.1%, scope effect of ILVA).                                                                                   +22.1%
•    Steel shipments for FY18 were 83.9Mt, - 1.6% vs FY17, primarily due to lower steel                            -28.5%
     shipments in ACIS (-10.3%) offset in part by Brazil (+5.8%, including Votorantim),                                                              10,265
                                                                                                                                    8,408
     NAFTA (+1.0%) and Europe (+0.2%, including Ilva offset by impact of a flood in               2,141     2,729           1,951
     Asturias (Spain), power outage in Fos (France) and slower ramp-up after BF reline in                                            FY17            FY18
                                                                                                  4Q17      3Q18            4Q18
     Poland).

•    Steel shipments for FY18 excl. Votorantim (in 2Q18) and Ilva (in 4Q18) were 82.5Mt,       Average steel selling price $/t
     -3.0% vs. FY17, driven by lower ACIS shipments (-10.3%) and Europe (-1.2%),                                                            +13.5%
     offset in part by Brazil (+0.5%) and NAFTA (+1.0%).
                                                                                                                    -1.4%

•    Sales for FY18 increased by 10.7% to $76bn, primarily due to higher average selling
                                                                                                   709       779            768      682              775
     prices (ASP) (+13.5%) offset in part by lower steel shipments (-1.6%).

•    Impairment charges net of purchase gains for FY2018 were $810m (include $0.7b
     primarily related to Ilva and the remedy asset sales for the Ilva acquisition and            4Q17      3Q18            4Q18    FY17             FY18
     Votorantim remedies). Exceptional items for FY18 were charges of $117m: $113m in          Steel shipments (000’t)
     charges related to a BF dismantling in Florange (France), $60m in charges related to
                                                                                                                    -1.5%                    -1.6%
     the new collective labour agreement in the US (including a signing bonus), a $146m
     provision taken in 1Q18 in respect of a litigation case that was paid in 3Q18 offset in
     part by PIS/Cofins tax credits related to prior periods recognized in Brazil of $202
                                                                                                 20,996    20,538       20,236      85,242           83,854
     million.

•    EBITDA up 22.1% primarily driven by improved operating conditions (positive price-
     cost effect), offset by the impact of lower market priced iron ore prices.
                                                                                                  4Q17      3Q18            4Q18     FY17            FY18
                                                                                                                                                            68
Group performance 4Q18 v 3Q18
Performance declined primarily driven by lower volumes

•   Crude steel production decreased by 2.2% to 22.8Mt with decreases in ACIS (-
                                                                                              EBITDA ($ Millions) and EBITDA/t
    16.4%, due to operational disruptions in Kazakhstan) and NAFTA (-12.2%,                     $102/t     $133/t           $96/t   $99/t             $122/t
    including BF reline delay in Mexico), offset in part by Europe (6.8%, scope effect of
    ILVA)                                                                                                                                   +22.1%
•   Total steel shipments in 4Q18 were 1.5% lower at 20.2Mt primarily due to lower                                -28.5%
    steel shipments in ACIS (-10.6%, impacted by operational issues in Temirtau,                                                                     10,265
                                                                                                           2,729                    8,408
    Kazakhstan), NAFTA (-6.2%) and Brazil (-1.4%), offset in part by a 4.0%                     2,141                      1,951
    improvement in Europe (due Ilva acquisition consolidated Nov 1, 2018). Excluding                                                 FY17            FY18
    the impacts of Ilva, steel shipments were 4.2% lower as compared to 3Q18
                                                                                                4Q17       3Q18            4Q18

•   Sales in 4Q18 declined 1.0% to $18.3bn primarily due to lower steel shipments (-          Average steel selling price $/t
    1.5%) and lower ASP (-1.4%), offset in part by higher market-priced iron ore                                                            +13.5%
    shipments (+16.8%)
                                                                                                                   -1.4%

•   Impairment charges net of purchase gains for 4Q18 and 3Q18 were $215m and
                                                                                                  709       779             768      682              775
    $509m, respectively, and primarily relate to Ilva and the remedy asset sales for the
    Ilva acquisition
                                                                                                 4Q17      3Q18            4Q18      FY17            FY18
•   Exceptional gains for 4Q18 were $29m primarily related to $202 million for
    PIS/Cofins tax credits related to prior periods recognized in Brazil, offset in part by   Steel shipments (000’t)
    $113m in charges related to a BF dismantling in Florange (France), and $60m
                                                                                                                   -1.5%                     -1.6%
    related to the new collective labour agreement in the US (including a signing
    bonus).

•   EBITDA declined 28.5% primarily due lower volumes                                           20,996    20,538       20,236       85,242           83,854

                                                                                                 4Q17      3Q18            4Q18      FY17            FY18
                                                                                                                                                            69
NAFTA performance 4Q18 v 3Q18
Performance declined due to lower steel shipments and negative price-cost effect
                                                                    EBITDA ($ Millions) and EBITDA/t
• Crude steel production decreased by 12.2% to 5.0Mt in 4Q18,         $57/t     $135/t          $96/t   $78/t            $112/t
  primarily due to market slowdown and blast furnace reline delay
  in Mexico                                                                                                     +45.1%
                                                                                       -33.2%
• Steel shipments in 4Q18 decreased by 6.2% to 5.2Mt, primarily
  due to seasonality and weak market conditions in the US                                                               2,471
                                                                                 744                    1,703
                                                                   292                          497
• Sales in 4Q18 decreased by 9.5% to $4.9bn, primarily due to     4Q17      3Q18       4Q18              FY17            FY18
  lower steel shipments and lower ASP -1.5% (flat products down
  -0.7% and long products down -4.0%)                           Average steel selling price $/t
                                                                                                                +14.8%
• Exceptional charges for 4Q18 were $60m primarily related to                           -1.5%
  the new collective labour agreement in the US (including a
  signing bonus)                                                                                                         852
                                                                       748       896            882      742
• EBITDA in 4Q18 decreased by 33.2% to $496m, primarily due
  to lower steel shipment volumes and negative price-cost effect       4Q17     3Q18            4Q18     FY17            FY18

                                                                    Steel shipments (000’t)
                                                                                        -6.2%                   +1.0%

                                                                      5,150     5,512           5,173   21,834       22,047

                                                                      4Q17      3Q18            4Q18     FY17            FY18
                                                                                                                                70
NAFTA
Improvement
 leading producer with 28.1Mt /pa installed capacity
Crude steel achievable capacity (million Mt)

            16.3                                                                      100.0%

                                                                             Flat      82.0%
 Flat
                                   6.2                    5.6

Long                                                                       Long        18.0%

            USA                 Canada                Mexico                          NAFTA

Number of facilities (BF and EAF)

 NAFTA                                            No. of BF                         No. of EAF
 USA                                                     7                                  2
 Canada                                                  3                                  4
 Mexico                                                  1                                  4
 Total                                                  11                                 10

Note: IH Bar facility closed in June 2015; Georgetown wire rod facility closed in August 2015, Vinton and LaPlace sold in 2Q 2016   71
Brazil performance 4Q18 v 3Q18
Performance declined primarily due to a negative price-cost effect
                                                                     EBITDA ($ Millions) and EBITDA/t
• Crude steel production increased by 1.0% to 3.2Mt in 4Q18            $112/t     $144/t          $92/t   $91/t            $134/t

• Steel shipments in 4Q18 decreased by 1.4% to 3.1Mt, driven                                                      +55.4%
  by seasonally weak domestic demand                                                     -37.2%

• Sales in 4Q18 increased by 15.5% to $2.4bn, due to the                           445                     990
                                                                                                                          1,538
                                                                        341                       280
  negative impact of hyperinflation accounting in Argentina in
  3Q18 (recorded as a nine-month year-to-date accumulated               4Q17      3Q18            4Q18     FY17            FY18
  impact), offset in part by lower ASP (-3.7%) and lower steel
  shipments (-1.4%).                                                 Average steel selling price $/t
                                                                                                                  +7.7%
• Exceptional gain for 4Q18 was $202m related to PIS/Cofins tax                           -3.7%
  credits related to prior periods recognized in Brazil.

                                                                         685       714            687      667             719
• EBITDA in 4Q18 decreased by 37.2% to $280m, primarily due
  to a negative price-cost effect. 4Q18 includes a one-time
  provision of $17 million for employee related charges in Brazil.      4Q17      3Q18            4Q18     FY17            FY18

                                                                     Steel shipments (000’t)
                                                                                          -1.4%                   +5.8%

                                                                        3,052     3,097           3,053   10,840       11,464

                                                                        4Q17      3Q18            4Q18     FY17            FY18
                                                                                                                                  72
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